Specialized Plans Flashcards
Credit Life Insurance (Individual and Group)
Credit Life Insurance is either a form of individual coverage on the life of a debtor, or group insurance issued to a creditor providing coverage on debtors for the benefit of creditors. Both types of plans are normally a form of Decreasing Term, and the amount of insurance reduces as the amount of obligation reduces.
Usually the individual debtor pays the premium
Industrial (Home Service)
Individual policies are issued to low-income workers without a medical examination requirement. The premiums are collected weekly or monthly by the insurance agent servicing that particular area or paid directly to the insurer.
Facility of Payment Clause – The insurer may pay to a relative or anyone it deems entitled to the benefits in the absence of a designated beneficiary.
